Thursday, March 04, 2010

No Cash for Celebration!

Recession had hit every possible event from 'day of love' to sports!

The economic downturn was reflected on the Cupid as well, as a mundane celebration of this year’s Valentine’s Day was the proof of troubled times that the world is going through.

Talking about numbers in the US — the largest market for Valentine’s Day merchandise — the average spending per person was reduced to $102.50 down from $122.98 last year. In spite of a smaller budget, the purchase pattern did not change as 35.7 per cent of Valentine consumers in the US bought flowers; in sign with the last year’s trend when the figure was 35.9 per cent. 16 per cent purchased jewelleries as against 16.6 per cent in previous year, and 58 per cent went for greeting cards viz-à-viz 56.8 per cent in 2008. The fact that people had a cut-short budget was visible across the world. In Thailand where the populace celebrated Valentine’s Day and Chinese New year on the same day, they blamed economic recession, high prices of commodities and political problems for their low spending.

Recession impacting festives is just not confined to Valentines' day but also envelopes various other similar celebrations and events across the globe. Take for instance, a new musical fest in Kent. It was cancelled last year due to recession. In order to make sure that event organisers do not face a huge monetary lossses due to cancellation, events like Glastonbury, Sonisphere, Camp festival and Global Gathering, had schemes where audiences can pay for tickets in installments.

Festivals in the US are experiencing a bad time because sponsors have cut down their their budgets. Back home, in India, shop owners and trade analysts opine that due to the recession, Diwali sales had gone down by 15-25 per cent.

Even sporting events like NBA basketball against the Miami Heat on Feb. 4, 2009 in Auburn Hills, experienced a half-filled stadium, for the first time. Likewise, Japanese manufacturers Suzuki pulled out of the world rally championship, LPGA Tour featured fewer events, Major League Baseball has been hit by low attendance and sponsorships — to name a few.

The gloom of economic crisis had its dark shadow on super rich and on their conspicuous consumption with a reduced budget. A survey by National Retail Federation in the US has shown that people with high level income above $150,000 have sliced their spending by a quarter. As Richard Baker, chief of Premium Knowledge commented, “You have a level of social opprobrium about being labeled as ostentatious" and were "pulling back substantially." Be it love for food, sports, music or "love itself", when it comes to money everything seems to take a backseat, at least during recession.
For Complete IIPM Article, Click on IIPM Article

Source :
IIPM Editorial, 2009


An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-



Outlook Magazine money editor quits
Don't trust the Indian Media!

No comments: